Cookeville, TN · Member since 2018 · 23 posts · 5 votes
Hey guys I’m 21 yrs old and my feet are burning to get into real estate . I am in the middle of training to be a helicopter pilot , the cash I have saved up could get me in a duplex (house hacking ) or I could finish school . Any advice really ? Renting a place now for little to nothing , just trying to figure out what to do next ! Helicopters is my dream but I want that passive income that real estate can produce ! I have attended rich dad poor dad Seminars , read a few investing books . Just wanting to get this started at a young age and maybe retire early (wouldn’t that be nice ) . I have a really good paying job 70 k a year and like I said just dying to get started . Should I finish school and then invest or prolong school and invest now . I have around 10k in stock already invested as well ! Thank you for the help and advice !
Real Estate Broker · Apopka, FL · Member since 2017 · 492 posts · 528 votes
7y
@Noah Farley I'm 33 now and while I wasn't in your specific shoes at 21, I can relate with the desire to "just do it". I graduated high school (2004) in the top 5% of almost 900 kids with nearly two years of college credits and a full ride scholarship to University of Florida. I entered as a sophomore, laser focused on becoming a mechanical engineer. However, I almost immediately realized it was not for me, I had zero interest and didn't do well despite more effort than I put into high school. I switched majors to Marketing and stuck with that a year. I soon realized they were really slowly teaching me what I could jump in and learn in 'real life'. To the dismay of my college educated family, I dropped out without even finishing an associate degree. Better than that, I didn't have a plan. I worked in banking from 2006-07 and quit when they announced indefinite promotion freezes thanks to the economy. I was a teller working on getting into commission sales. Tried to get into insurance but failed there. I started a mobile car detailing business in 07 that I still run today and my wife runs a second truck. I've grossed close to a million in 11 years with low overhead, but now am mentally burned out on it. I've got the business listed for sale and currently spend about 50% of my work time on that and 50% on my business as a Realtor. I haven't cut back as much as I've added more to my plate. Less sleep, zero "free" time other than time with kids that I won't give up. I've got a mortgage, child support to pay, two kids 50% of the time and three step kids full time. I'm not that much older but I'm now at a point in my life I can't say "screw it all" and jump ship. I'm making progress and will soon be full time in RE and soon after in a position to invest as well (beyond my primary I bought in 2009). However, making this recent switch in focus made me realize I should have been focusing on multiple streams of income all along. I've considered getting my license before I did (early this year). Had I done so before getting burned out on my business I'd feel less hurried. I'd give something my all until I beat it to death and then dive into the next thing at the last minute. I don't regret my path, but I plan differently now. Use FHA and househack a duplex or quad. Rent rooms in your unit too and likely still cash flow. Keep your job and stash cash, and if you can afford it, stay in school IF it is a passion. I know a guy who flies tourist helicopters in Hawaii and rides a motorcycle to work. Needless to say he doesn't hate life. Investing with a good income is much easier. $70k is great, but if a helicopter pilot makes at least that or more, keep at it AND house hack AND keep working. My one regret is buying a single family instead of multi in 2009. I'm now in a house of 7 people, but had I bought a duplex I'd likely still own that plus a single family when needed. In time the better streams of income will push out the ones not as well suited to your life.
Attorney · Akron, OH · Member since 2016 · 535 posts · 389 votes
7y
School for what? If you have a $70k/yr job without even finishing school, I'd consider what you are doing in school and whether it would even give you an accretion to income. Additionally, with your income, and depending on your expenses, you could consider doing an FHA-multifamily deal with additional grants or first-time homebuyer's grants to reduce the downpayment even more than a traditional FHA. That could allow you to do both school and real estate investing at the same time.
Rental Property Investor · Hollis, NH · Member since 2018 · 108 posts · 36 votes
7y
@Noah Farley my question would be why not both?!! I’m not the guy to give you advice as my feet and yours are both currently burning. From what I’ve read on BP there’s a ton of smart savvy people here that could probably map out a path for you! The one thing that has really started sinking in is that your mindset changes when you decide to get into REI. Forget traditional thinking. Figure out to make it work! Glad to see you’re making this decision at 21 instead of my age of 21! Good luck!
Rick
Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
7y
Finish your school first. You may regret later that you did not pursue finance, real estate. You can even get a BS or MA in re in selective schools desirable in commercial RE world.
Real Estate Broker · Apopka, FL · Member since 2017 · 492 posts · 528 votes
7y
@Noah Farley I'm 33 now and while I wasn't in your specific shoes at 21, I can relate with the desire to "just do it". I graduated high school (2004) in the top 5% of almost 900 kids with nearly two years of college credits and a full ride scholarship to University of Florida. I entered as a sophomore, laser focused on becoming a mechanical engineer. However, I almost immediately realized it was not for me, I had zero interest and didn't do well despite more effort than I put into high school. I switched majors to Marketing and stuck with that a year. I soon realized they were really slowly teaching me what I could jump in and learn in 'real life'. To the dismay of my college educated family, I dropped out without even finishing an associate degree. Better than that, I didn't have a plan. I worked in banking from 2006-07 and quit when they announced indefinite promotion freezes thanks to the economy. I was a teller working on getting into commission sales. Tried to get into insurance but failed there. I started a mobile car detailing business in 07 that I still run today and my wife runs a second truck. I've grossed close to a million in 11 years with low overhead, but now am mentally burned out on it. I've got the business listed for sale and currently spend about 50% of my work time on that and 50% on my business as a Realtor. I haven't cut back as much as I've added more to my plate. Less sleep, zero "free" time other than time with kids that I won't give up. I've got a mortgage, child support to pay, two kids 50% of the time and three step kids full time. I'm not that much older but I'm now at a point in my life I can't say "screw it all" and jump ship. I'm making progress and will soon be full time in RE and soon after in a position to invest as well (beyond my primary I bought in 2009). However, making this recent switch in focus made me realize I should have been focusing on multiple streams of income all along. I've considered getting my license before I did (early this year). Had I done so before getting burned out on my business I'd feel less hurried. I'd give something my all until I beat it to death and then dive into the next thing at the last minute. I don't regret my path, but I plan differently now. Use FHA and househack a duplex or quad. Rent rooms in your unit too and likely still cash flow. Keep your job and stash cash, and if you can afford it, stay in school IF it is a passion. I know a guy who flies tourist helicopters in Hawaii and rides a motorcycle to work. Needless to say he doesn't hate life. Investing with a good income is much easier. $70k is great, but if a helicopter pilot makes at least that or more, keep at it AND house hack AND keep working. My one regret is buying a single family instead of multi in 2009. I'm now in a house of 7 people, but had I bought a duplex I'd likely still own that plus a single family when needed. In time the better streams of income will push out the ones not as well suited to your life.
Cookeville, TN · Member since 2018 · 23 posts · 5 votes
7y
@Russell Holmes
Love the story ! I will be doing both jobs once school in complete . I know better than to buy a single family home . I don’t want to get into drop dept and get tied down like most people are . If I’m gonna be in debt someone else is gonna pay for it . Thank you for your hell and advice
Real Estate Broker · Apopka, FL · Member since 2017 · 492 posts · 528 votes
7y
@Noah Farley no problem! I wish I had found BP back then. I have always had an interest in RE investing but thought it would be my detailing business to get me there and never knew FHA could buy multi. Luckily my single family purchase wasn't all bad. I found a builder community that was started pre-crash and the builder was stable enough to push through. I bought and had built a brand new 1910sf block 4/2 with 2 car garage for $179k, FHA loan, builder credits to cover down payment and the $8000 first time home buyers credit in my pocket. At the time my mortgage payment was less than a 3 bedroom apartment rent and now it would barely rent a 2/1, plus I didn't have to put a dime down. I've only done basic preventative maintenance and enclosed a dining room for my step daughters. Still have carpet that's been shampooed God knows how many times and laminate counters that are supposed to resemble stone. Recently appraised at $252k and the value dropped some from 2009 until 2011. I should have a ton of equity but I spent most of it on lawyers and settlement in divorce.....but that's another whole life lesson, hahaha. We'll eventually add another bedroom and bathroom so my girls have their own rooms and put in nicer finishes, but it's tough to justify nice things with 5 kids abusing every surface! Even still, had I been a renter the divorce would have bankrupted me. My home purchase allowed me to survive and I'm leveraged to about 79% of current value taking in the next chapter on my feet.
Great advice! Definately finish school if that's your desire. Looks like you have a decent income so I would look for a great deal with great resale potential, whether its a multi family or single family. Flipping real estate may be more exciting for you versus buying and holding as rental properties. Go for it and Good luck!
Real Estate Agent · Arlington · Member since 2016 · 162 posts · 100 votes
7y
Seek out older, experienced mentors too (not just REI people!). You have a drive to move forward, but you can get even farther if you learn from their journeys and avoid their mistakes.
Love your enthusiam. Hit it hard these next 10 years as they will be very impactful upon the course of your life.
Cookeville, TN · Member since 2018 · 23 posts · 5 votes
7y
@Thomas Capers
Flipping is more exciting but I always come across the problem of funding the deal plus the repair . I have great credit (740) so I am not sure a good place to look for funding .
Cookeville, TN · Member since 2018 · 23 posts · 5 votes
7y
@Jonny R.
Hey Jonny ,
I know I need a mentor and need one bad . But I don’t know anyone who even wants to be in real estate . 99.8 % of people around me work 9-5 and are tied down by debt so bad they can’t do anything about it ! I am not gonna get into bad debt lol. If I am gonna get into debt someone else is gonna pay for it . I am still looking for that mentor I need !
I see. Your area may have lower end flip opportunities (20k to 40k asking price?) you can start small and work your way up after a while. I'm assuming you have some money saved up. You may have some local banks in your area (banks not credit unions) that will lend you 70% to 80% on a fixer upper, check around...
Specialist · Dayton, OH · Member since 2018 · 59 posts · 41 votes
7y
@Noah Farley that’s 99.8% of people in general. Glad you made your choice young. Finish school, flying helicopters is a niche, it’s not like you’re getting a bachelors in a overly saturated field.
If nothing else you’ll be flying your own helicopter once you get your real estate figured out.
Go to local REI and be on the lookout for a mentor.
School for what? If you have a $70k/yr job without even finishing school, I'd consider what you are doing in school and whether it would even give you an accretion to income. Additionally, with your income, and depending on your expenses, you could consider doing an FHA-multifamily deal with additional grants or first-time homebuyer's grants to reduce the downpayment even more than a traditional FHA. That could allow you to do both school and real estate investing at the same time.
School for what?!
sheeet man.
School is not just for getting money!
You know why I wanted to go to school? I wanted to be an astronaut. I wanted to be able to build a spaceship and go... anywhere, somewhere, anywhere that is not earth.
When people say knowledge is power it really is so!
Yeah yeah you can learn a lot from experience, from the streets, but take math for example. I can systemise and equate any success into a formula, and 10x it.
School teaches you discipline, not give up, patience..
A degree you are passionate about is not just a piece of paper. It really is powerful. It gives you confidence and inner strength that can be applied in anything in life.
Yes, go to school if time and money allows... een if you are a millionaire!
I appreciate you practical point of view, but my contribution to that message is, consider school to be strength in it self. Not just a means to get money!
Cookeville, TN · Member since 2018 · 23 posts · 5 votes
7y
@Jerryll Noorden
I know school isn’t for getting money ! Flying a helicopter does not come with a degree . I didn’t have to go to college to learn to fly . The job I have now right out of high school pays 70k a year . I got a Forman job in a aluminum extrusion factor when I walked in the door . Helicopters is a dream which I will finish one day but having money in life to support my family is what I am looking for other then a 9-5 job .
Cookeville, TN · Member since 2018 · 23 posts · 5 votes
7y
@Earl Hatmaker
I will be able to do both jobs when I finish school . Flying helicopter starting out don’t pay a lot . But once I get a lot of hours and move into ems field I will be making 100k
@Noah Farley Use FHA and househack a duplex or quad. Rent rooms in your unit too and likely still cash flow.
does it really depend what city the property is located? multi family properties in los angeles are in the millions so i was thinking more inland to start out as a first time home buyer. Would that be a good idea? thanks for sharing!
Cookeville, TN · Member since 2018 · 23 posts · 5 votes
7y
@Kevin Dehesa
It’s not really a tuition based thing . It’s 300$ for 1 hour of school . I like around 50 hours till I am finished . I have a job promised to me when I am done with school as well
San Francisco, CA · Member since 2017 · 74 posts · 64 votes
7y
If it only takes 15k to finish school, I'd say finish it, and then get a good helicopter job and save up like crazy. you'll rebuild the 15k and more when you have a job (after finishing school of course).